RFID technology as sustaining or disruptive innovation: Applications in the healthcare industry

Abstract In this paper we use the implementation of radio frequency identification (RFID) in various sectors of the healthcare industry as an illustration and application of how academics and managers may assess the potential for new technologies to be sustaining or disruptive to an organization. We review RFID technology, summarize literature related to disruptive innovation, develop a qualitative framework that examines the sustaining and disruptive potential of RFID, and discuss examples of healthcare applications within the context of this framework

Disruptive Technology: Approaches to Escape a Discontinuous Environment

Disruptive technologies have erased and continue to extinct previously successful industries. Scholars’ studies consider ICT as a major cause for various industries, as, e.g., analogue photography, typewriters, VHS-cassettes and so on. They have become obsolete as its effect. Despite the creation of new industries at the same time, the environment for old industries results frequently in obsolescence. Especially, as research tends to hold, impact on organisations increases, when new technologies effectuate an additional shift in consumer behaviour. Opportunities for established firms become likely discontinuous then. The replication industry of optical discs is a specific industry sector within the wider Home Entertain-ment Industry manufacturing the present dominant design of the physical mass product, DVD and CD. However, ICT-based dematerialised, virtual products threaten the replication industry’s future, which may become obsolete, since more and more consumers adopt virtual downloads as their preference. This paper studies the approaches of selected industry’s incumbents to be innovative themselves to escape their emergent disruptive environment. Based on primary and secondary research, it addresses their adopted opportunities of accessing new growth paths through extended technology management and the development of a future-oriented direction by additional technologies and augmented services to escape the environment of decline and exit. The purpose of the underlying long-term research is to study, how do replicators (as an example for declining industries) respond to the threat of disruptive innovation and whether their (strategic) behaviour may serve as a model for other industries facing similar scenarios. This research is undertaken qualitatively using a single case study from which excerpts are presented. The present findings provide evidence that after a long time of reluctance, replicators have started to develop further resources and capacities to identify new and additional ways supporting them in their struggle for survival. But these findings show as well a pattern that approaches to future orientation may not be sufficient, since 1. They do not resolve the dilemma of competing with products and services committed to the physical place against a shifting consumer behaviour pattern addressing the virtual space. 2. Constraints, like e.g., staff, physical facilities, skills and path-dependent reasons further marginal, or in Abernathy et al.s’ understanding regular innovation or re-engineering fighting against radical innovation by both, technological impact and market linkages (1983, 1984). 3. The established customer-supplier relationships may be of disadvantage, since hindering replicators to have direct access to the point of consumption. These indicators suggest that disruptive innovation will be stronger in the end and many present efforts may be in vain

Strategic Niche Management (SNM) beyond sustainability. An exploration of key findings of SNM through the lens of ICT and privacy

Recently the governance of socio-technical transitions to sustainability is gaining attention in the field of innovation studies. One particular approach is that of Strategic Niche Management (SNM), which advocates the creation of protected space to experiment with radically new sustainable socio-technical practices. This paper contributes by asking whether this approach is also useful for analysis and governance of other types of socially desirable change. This question is addressed through a review of six key-findings of Strategic Niche Management and an original case study in the field of Near Field Communication (NFC) technologies for mobile payment. The social value at stake in this case is not sustainability but privacy. We draw three main conclusions. First, we find that the key-findings and concepts in SNM for sustainability are helpful to understand and interpret much of the data collected for the NFC case and privacy. However, there are notable differences in each of the key-findings, i.e findings related to a) the local-global distinction in SNM, b) expectations, c) social networks, d) learning, e) protection, and f) niche-regime interactions. Second, in relation to governance, the role of sustainability values (being a promising value to pursue) and privacy values (being a bottom-line value to defend) are notably different. Third, these differences result in different roles of public bodies in niche development. The paper ends with discussing the consequences for SNM for sustainability research and future research topics.Strategic Niche Management, sustainability, NFC, mobile payment, privacy

Critical Management Issues for Implementing RFID in Supply Chain Management

The benefits of radio frequency identification (RFID) technology in the supply chain are fairly compelling. It has the potential to revolutionise the efficiency, accuracy and security of the supply chain with significant impact on overall profitability. A number of companies are actively involved in testing and adopting this technology. It is estimated that the market for RFID products and services will increase significantly in the next few years. Despite this trend, there are major impediments to RFID adoption in supply chain. While RFID systems have been around for several decades, the technology for supply chain management is still emerging. We describe many of the challenges, setbacks and barriers facing RFID implementations in supply chains, discuss the critical issues for management and offer some suggestions. In the process, we take an in-depth look at cost, technology, standards, privacy and security and business process reengineering related issues surrounding RFID technology in supply chains

Internet of Things and Their Coming Perspectives: A Real Options Approach

Internet of things is developing at a dizzying rate, and companies are forced to implement it in order to maintain their operational efficiency. The high flexibility inherent to these technologies makes it necessary to apply an appropriate measure, which properly assesses risks and rewards. Real options methodology is available as a tool which fits the conditions, both economic and strategic, under which investment in internet of things technologies is developed. The contribution of this paper is twofold. On the one hand, it offers an adequate tool to assess the strategic value of investment in internet of things technologies. On the other hand, it tries to raise awareness among managers of internet of things technologies because of their potential to contribute to economic and social progress. The results of the research described in this paper highlight the importance of taking action as quickly as possible if companies want to obtain the best possible performance. In order to enhance the understanding of internet of things technologies investment, this paper provides a methodology to assess the implementation of internet of things technologies by using the real options approach; in particular, the option to expand has been proposed for use in the decision-making process

Modeling the Impact of RFID Technology on the Healthcare Supply Chain

Due to increasing competition in the healthcare industry, healthcare providers must find ways to reduce their costs of operation or potentially lose customers to more affordable options. For many years, the healthcare supply chain has significantly lagged behind the retail supply chain in terms of supply chain efficiency. Certain disruptive technologies that have become widespread in the retail supply chain have yet to be integrated by a significant number of healthcare providers, and as a result, there are large opportunities for improvements in the healthcare supply chain that could lead to both cost and time savings. Radio Frequency Identification (RFID) technology is a disruptive technology in the retail supply chain that utilizes readers to automatically identify and track tags attached to objects. This paper leverages modeling and simulation techniques to explore the impact that RFID technology could have on the healthcare supply chain. Keywords Healthcare Supply Chain, Retail Supply Chain, Disruptive Technology, RFID Technology, Simulation, Modelin

Perspectives of Integrated “Next Industrial Revolution” Clusters in Poland and Siberia

Rozdział z: Functioning of the Local Production Systems in Central and Eastern European Countries and Siberia. Case Studies and Comparative Studies, ed. Mariusz E. Sokołowicz.The paper presents the mapping of potential next industrial revolution clusters in Poland and Siberia. Deindustrialization of the cities and struggles with its consequences are one of the fundamental economic problems in current global economy. Some hope to find an answer to that problem is associated with the idea of next industrial revolution and reindustrialization initiatives. In the paper, projects aimed at developing next industrial revolution clusters are analyzed. The objective of the research was to examine new industrial revolution paradigm as a platform for establishing university-based trans-border industry clusters in Poland and Siberia47 and to raise awareness of next industry revolution initiatives.Monograph financed under a contract of execution of the international scientific project within 7th Framework Programme of the European Union, co-financed by Polish Ministry of Science and Higher Education (title: “Functioning of the Local Production Systems in the Conditions of Economic Crisis (Comparative Analysis and Benchmarking for the EU and Beyond”)). Monografia sfinansowana w oparciu o umowę o wykonanie projektu między narodowego w ramach 7. Programu Ramowego UE, współfinansowanego ze środków Ministerstwa Nauki i Szkolnictwa Wyższego (tytuł projektu: „Funkcjonowanie lokalnych systemów produkcyjnych w warunkach kryzysu gospodarczego (analiza porównawcza i benchmarking w wybranych krajach UE oraz krajach trzecich”))

Improving Reliability of Medical Device Tracking Using Unique Device Identification

The term “disruptive innovation” has been the buzzword of industries looking to create technological advancements in their respective fields ever since the term was first coined in 1995. In order to invest in the future of the industry, companies are beginning to focus on new, innovative ideas that come into the market as a low-cost alternative to the sustaining innovations currently in place. Similar business-models can be seen in the healthcare industry, as physicians look to disruptive innovations to provide methods of diagnosis and treatment that are easier to perform and maintain. Companies, from medical device manufacturers to the hospitals using these devices, are now working to comply with the Federal Drug Administration Amendments Act of 2007’s requirements of Unique Device Identifiers on all equipment – a new, standardized identification system to ensure all necessary information about a device is provided. This honors thesis analyzes the recent history of disruptive innovations, in all industries and specifically healthcare, and the emergence and benefits of Unique Device Identification. Modeling of the implementation of Unique Device Identifiers in an industrial setting resulted in a 16.55% time improvement of the affected phases of the recall process, preventing 30 fatalities. When a benefit-cost analysis was performed – comparing the value of a human life to the cost of UDI implementation – the benefit of implementation outweighed the costs by 277%. Keywords: Disruptive Innovation; Healthcare; Transportation; Reliability; Medical Devices; Real-Time Location Systems; FDAAA; Unique Device Identification; Agent Based Modelin

ADOPTION OF RFID AND ITS LONG TERM IMPACT ON FIRM VALUE

With the growing scale of RFID investment, the relationship between RFID and firm value has attracted the attention of a lot of researchers. Prior research had employed the event study method to examine the short term market reaction to RFID adoption and found significant negative abnormal return. In this paper, we extend previous research by investigating the long term impact of RFID investment on firm market value using the CPA (Calendar Portfolio Analysis), 108 announcements related to 74 publicly traded companies were analysed. Our results indicate an overall significant negative impact on long term abnormal return of market value after adoption of RFID. It is also discovered that non-US based firms, late adopters, manufacturers, highly diversified firms, high financially unhealthy firms and low growth potential firms suffered more negative impact in the long term. The results signify that the market is impacted by the risks associated with the use of a new and disruptive technology like RFID and may not yet be ready to accept it as a standard technology that is adopted by firms. Put together, our results provide new insights into how RFID and other contextual factors interact to affect the financial performance of firms in the long run